In New Keynesian macroeconomics, when marginal costs are too sticky to change in proportion to nominal aggregate demand, prices ________ and so menu costs ________ needed to explain business cycles
A) are also sticky, are
B) are also sticky, are not
C) are still perfectly flexible, are
D) are still perfectly flexible, are not
B
Economics
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The federal budget exhibited a $128.7 billion surplus in 2001 but moved to a deficit of $157.8 billion in 2002
Some argued the deficit was opened up because of the Bush 2001 tax cuts, but others argued that the deficit grew because of the recession suffered in 2001. Evaluate the validity of the second argument.
Economics
A consumer who has chosen the right mix of goods and services to maximize his or her utility is said to have achieved
A) consumer equilibrium. B) consumer benefit. C) consumer surplus. D) consumer optimum.
Economics